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Management the Microsoft Way

Management the Microsoft Way. David Thielen. Contact Information. David Thielen www.thielen.com dave@commerce.com news.thielen.com/thielen.books.management These slides ftp.thielen.com/pub/seminars/SD99_msft.ppt Somewhere on the SD00 website. What We Are Here For.

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Management the Microsoft Way

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  1. Management the Microsoft Way David Thielen

  2. Contact Information • David Thielen • www.thielen.com • dave@commerce.com • news.thielen.com/thielen.books.management • These slides • ftp.thielen.com/pub/seminars/SD99_msft.ppt • Somewhere on the SD00 website

  3. What We Are Here For • To duplicate Microsoft’s success • This is not hard • But it does require a cultural change

  4. Fundamental Change • Franco-Prussian War • Everyone (even most Germans) thought France would win. But Germany had implemented a better system and destroyed France • Change now or die • By the time you realize you’re in trouble, it’s too late.

  5. Why are we in Business • To make $$$ • To make a profit • To increase the stock (options) value • Microsoft does not follow this model • Making money is tertiary • So why are they in business???

  6. Total World Domination • To win • Conquest, not security • To claim 100% of every strategic market • This is the key • It’s easy to hear, difficult to truly understand • The Klingon Corporation

  7. A More Successful System • Market dominance is not the reason • The baby bells are scared of Microsoft • Lack of ethics is not the reason • The mafia does not own the fortune 500 • Long term this method beats the old way • Other companies use this system • It will overtake most industries in 10 years

  8. Hire the Top 5% • The real top 5% • Not what you pretend it is • Pay what it takes • Salary, Options • The alternative is you compete against the best - without the best yourself • Do not use outsourcing/consultants for core work

  9. Bet the Company • Microsoft… • Went from no Internet to dominant in 9 months • Killed DOS and won Windows and Office • Someone will take their market • Don’t lose your markets to another company • A toe in the water will not beat someone who commits everything

  10. Require Failure • You can forbid failure • And get few successes • You can require success • And accept failure as part of the process • Most companies forbid failure • And thereby have few successes • Deliver bad news quickly • Hiding problems merely makes them worse

  11. Qualified Managers • Technically qualified • How else can they make intelligent decisions • Yes this means many managers are not qualified. • Don’t bullshit the employees • They know when you are • Imagine asking the CEO of a well-run company something.

  12. Perform, Perform, Perform • Based on performance today and tomorrow • Who cares what they did 1 or 10 years ago • The keys to performance • Interesting work • Measured by performance & success • Peer pressure

  13. Shrimp vs. Weenies • When a job absolutely, positively requires 5 people - assign 4. • No bloated bureaucracy • Everyone must pull their own weight • Costs are minimized • Can get more accomplished

  14. Bill is Watching • Knows what is happening • Gets unsolicited e-mail from line employees daily - and acts on it • Has tight control of the company • Calls VPs s every Saturday • Numerous retreats • BillG meetings • All managers do this

  15. Culture • Ownership • Only then do people emotionally commit • Freedom • And with it, responsibility • Focus • No one gives their life for two causes • Teams • People you can depend on, people who depend on you

  16. More Culture • Practical jokes • Builds up Esprit-de-core • Stock Options • Keeps you going during the rough times • It comes down to one thing • Microsoft treats their employees as grown-ups

  17. Stop the Insanity • Effective meetings • Only when necessary • Decisions are made by the end of the meeting • Information is not power • Eat your own dog food

  18. Home Away From Home • Individual offices • Same size, furniture, etc. • As many with windows as possible • Small buildings • No dress code • Free soda pop • Open supplies • No set hours

  19. Just Another Startup • Each division operates as an autonomous unit in many ways • Each group has a start-up mentality • So Microsoft is just another start-up • With 16 Billion in reserves • With 25,000 people • A startup can continue to grow by 40%/year

  20. There are others • Other companies are following this model • It will be standard procedure • For those companies that survive the next 10 years...

  21. The Future • It’s all very simple. Each company will choose to evolve or die. • Of those that choose to evolve, some will be successful enough that they will survive and some will even prosper • For the remainder, it is very simply… • The End

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